Senate Commerce Committee Statement to Senate, No. 3013 — State of New Jersey (January 26, 2023)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 3013, State of New Jersey, dated January 26, 2023, reporting the bill favorably. The bill requires the statutory definitions of women's business enterprise to include businesses owned, in whole or in part, by an irrevocable trust of which the majority of trustees and beneficiaries are women. It restates the general definition: a business with its principal place of business in the State that is independently owned and operated and at least 51 percent owned and controlled by women. The bill also waives any waiting period before re-application for enterprises previously denied certification or re-certification as women-owned businesses that would now qualify.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
3013

STATE
OF NEW JERSEY

DATED: JANUARY
26, 2023

The Senate Commerce Committee reports favorably Senate
Bill No. 3013.

This bill requires that the various statutory
definitions of women’s business enterprise include businesses owned, in whole
or in part, by an irrevocable trust of which the majority of beneficiaries or
trustees are women.

Under current law, a women’s business enterprise is
interpreted as requiring direct ownership by a woman or women. A women’s
business enterprise is generally defined as a business that has its principal
place of business in this State, is independently owned and operated, and is:

(1) a sole proprietorship owned and controlled by a
woman;

(2) a partnership or joint venture owned and
controlled by women in which at least 51 percent of the ownership is held by
women and the management and daily business operations of which are controlled
by one or more women who own it; or

(3) a corporation or other entity whose management
and daily business operations are controlled by one or more women who own it,
and which is at least 51 percent owned by women, or if stock is issued, at
least 51 percent of the stock is owned by one or more women.

This bill supplements the various definitions to
include a business that has its principal place of business in this State and
is owned, in whole or in part, by an irrevocable trust of which the majority of
trustees and beneficiaries are women. This addition would accommodate indirect
women ownership of the business through an irrevocable trust, an estate
planning tool often utilized to preserve family ownership of a business over
the course of multiple generations.

This bill also waives any waiting period prior to
re-application by any enterprise which previously had been denied certification
or re-certification as a women-owned business that would now qualify for such
status.

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